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Mercantile

Most sales look good on the revenue line.

Then the margin is gone, customers learn to wait for the next one, and the stock that really needed to move is still on the shelf. Mercantile is what I'm building for Shopify stores: the financial analyst a small store never hired, deciding which offer to run, or whether to run one at all.

Sale week

Revenue

Profit

An illustration, not a real store.

Entry 1

Offers are made blind, or rented.

Most stores design their offers one of two ways. They guess: twenty percent off, because a competitor did it, or because it's a holiday. Or they hire someone, a financial analyst or a cost controller, to study the numbers and design offers that sound great without losing money.

Most small stores can't afford the second, so they do the first. Mercantile does the second job for them. You install it in your store, connect it, and it reads what you already have: your products, your stock, your orders, your costs, and how past offers went.

Guess

Cheap, and blind.

Hire an analyst

Careful, and expensive.

Mercantile

The careful work, installed.

The same decision, three ways to make it.

Entry 2

It starts from where the store is under strain.

Most offer tools start from demand: what will people buy? Mercantile starts from pressure: where is the store under strain? Stock that isn't selling. Items close to their expiry date. Products with enough margin to pay for a promotion. Products that already sell well at full price and should never be discounted. Customers who used to buy and stopped.

Some pressure you want to release. Some you want to keep.

  • Not selling
  • Close to expiry
  • Room in the margin
  • Sells well at full price: protect it
  • Bought by customers who stopped coming
An illustration.

Entry 3

A handful of careful moves.

From that map, Mercantile puts together a few possible plays, each with different economics. A discount that's fenced in so it can't spread. A bundle that moves slow stock alongside something people already want. A threshold that raises the size of an order. A win-back offer for customers who went quiet. A staged release for aging stock. A short window for something that's suddenly trending.

  1. 1

    More visibility

    Show it where people look.

  2. 2

    A gentle bundle

    Pair it with something they want.

  3. 3

    A markdown

    Lower the price, carefully.

  4. 4

    Clearance, only at the end

    Clear what's left.

Aging stock moves through these steps in order. Clearance comes last.

For each one, it projects what matters. Profit, not only revenue. How much margin is exposed. Who would have bought anyway. Whether it teaches customers to wait for sales.

Reached by the offer

Would have paid full price

Margin given away for nothing

Where the two groups overlap, a discount buys nothing.

Entry 4

What a week's advice might look like.

Mercantile · This week

Week of

Don't discount the serum. It already sells at full price, and a discount would only give margin away.

Use it as the anchor in a three-item bundle with the two cleansers that aren't moving.

The sunscreen batch expires in ninety days. Give it more visibility this week. If it hasn't moved in a month, add it to a gentle bundle.

If the bundle hasn't sold after two weeks, switch to a free gift instead of a deeper discount.

Approve allApprove someNot this week
An illustration, not a real store.

The cleansers: carried by it

The serum: never discounted

An illustration.

Entry 5

Sometimes the answer is no sale.

Don't run a sale this week.

Some weeks, that's the right advice. The problem isn't the price. It's that people can't find what they're looking for, or the product page doesn't explain it. A tool that always recommends a discount is a tool that profits from discounts. I want one that tells the store the truth.

This week's pressure

  1. Fenced discount

  2. Bundle

  3. Threshold

  4. Win-back

  5. Staged release

  6. Trend window

  7. No sale this week

Swipe to see the whole drawing →

Six plays, and a seventh answer: no sale this week.

Entry 6

It recommends, or it acts. You choose.

Mercantile can recommend a play and wait for your approval, or run it on your behalf inside limits you set: a margin it can never go below, products it may never touch, a limit on how many offers run at once, and a rule for when to stop an offer that isn't working. Every offer it runs comes with its own way to stop. It can also tell you what to retire: the products that cost more to keep than they bring in.

Every play waits for your approval.

Press either position to see what it means.
  1. Margin floor

  2. Protected products

  3. Offers at once

  4. Stop if it isn't working

    Tripped: the offer stops on its own.

  5. The offer runs

The limits sit in series. When one trips, the offer stops.

Entry 7

And it learns what works in your store.

After each offer, it looks at what actually happened, and learns which kinds of offers work under which conditions, in your store specifically. It starts with Shopify, because that's where so many small stores already live. Later, stores on other platforms can connect through their own integration.

  1. 1

    Serum bundle

    Relieves
    Slow cleansers
    Margin at risk
    Low
    Ends when
    Two weeks, or when the cleansers sell
  2. 2

    Sunscreen visibility

    Relieves
    Expiring batch
    Margin at risk
    None
    Ends when
    When the batch is gone
  3. 3

    Win-back

    Relieves
    Lapsed customers
    Margin at risk
    Medium
    Ends when
    After one message
  4. 4

    No sale

    Relieves
    Nothing to release
    Margin at risk
    None
    Ends when
    Next week
An illustration.

You are in the studio: Mercantile